House price growth accelerates

House price growth rose in June, according to the FT house price index.

House price growth rose in June, according to the FT house price index.

Despite a recent trend of inflation slowing down, prices in England and Wales rose by 0.7 per cent in June, up on the 0.5 per cent rise recorded in May.

That helped to push the annual increase up to nine per cent, which is also an increase on 8.7 per cent in the previous month.

The average house price is now £222,222 but Dr Peter Williams, chairman of Acadametrics, said that people should not panic.

"This modest upward movement runs slightly against the pattern of stability which we have been reporting for some months," he said. "It remains to be seen if this represents a change in the longer term trend.

"Regional differences are considerable and stripping London out of the analysis would bring the annual rate of house price inflation down to 7.6 per cent."

Dr Williams went on to say that "all commentators" agree that the market will slow down towards the end of the year, with more interest rate rises predicted as well as negative income growth.